The Procurement Glossary » Kraljic Matrix
Kraljic Matrix
Suppliers & Vendors
Definition
A model that classifies purchases by supply risk and profit impact to guide category and supplier strategy.
Explanation
The Kraljic matrix plots items into four quadrants — strategic, leverage, bottleneck and non-critical — each implying a different sourcing approach. It is a foundational tool for prioritising category strategies and supplier relationships.
Example
Kraljic analysis places a rare custom component as 'strategic' (partner closely) and paper as 'leverage' (compete hard).
Related terms
- Supplier Segmentation — Grouping suppliers by importance and risk so management effort is focused where it delivers most value.
- Category Strategy — A plan for how a business will source and manage a specific spend category to maximise value and manage risk.
- Supply Risk — The risk that supply of a good or service is disrupted, constrained or made more costly.
- Strategic Sourcing — A structured, data-driven approach to sourcing that aligns supplier selection with long-term business goals rather than one-off price hunting.
Frequently Asked Questions
What is Kraljic Matrix?
A model that classifies purchases by supply risk and profit impact to guide category and supplier strategy. The Kraljic matrix plots items into four quadrants — strategic, leverage, bottleneck and non-critical — each implying a different sourcing approach. It is a foundational tool for prioritising category strategies and supplier relationships.
Can you give an example of Kraljic Matrix?
Kraljic analysis places a rare custom component as 'strategic' (partner closely) and paper as 'leverage' (compete hard).
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